Trade update in Puma Biotech

I have a position in the Submarine Basket for $PBYI. Here are the details:

I owned the June 05w/September 180/225 Diagonal Call Calendar

This takes margin

On 6/1 I StC the June 05w $180 Calls for a $9.50 credit

By selling the $180 Calls I was left with the short September $225 Calls. I set a Buy Stop at $185 on 6/1. I lowered the Buy Stop to $150 on 6/3. I lowered the Buy Stop to $138 on 6/8.

It seems that I’ve missed a real opportunity to capture the DOWNSIDE move:

PBYI_B

What is challenging with trading a basket of stocks is when you have one criteria for entry: pullback to Support. What happened here is I was positioned for an UP move and although I was able to sell the long Calls for a gain – I missed the REAL opportunity in the $70 move down from $200. I was too focused on the short Calls and kept lowering my Buy Stop. I should have also had a Sell Short Stop (which I do often).

– DM 9:20 AM CST

Position Updates

Reminder:  you can view the Positions tab to review a list of current positions in all personal accounts.

Here is a Summary from my Trading Journal for the Swing, Long-term, and IRA accounts:

06062015

Note: the light pink shading denotes a position that had activity or an update to information this week.

– DM 10:45 AM CST

 

June 05 weekly OpEx

Just a few existing positions this week with options expiring on Friday, 6/5:

$YUM (Fab 5)

$SWKS (Swing account)

$XLF (Long-term account)

 

Clients:

$COST $WFC $XLE $CSCO $ILMN

 

– DM 11:00 AM CST

 

The Fab 5 review

I keep a list of the Fab 5 ($100 Roll) positions here on the Blog but I thought I would give a quick review of how each position looks right now:

DirecTV $DTV  I am long the June $94 Calls. Options Net is -$.30 so the Risk is well-defined (what I paid for the Calls)

MasterCard $MA  I am long stock at $92 with short June 12w $93 Calls (covered calls) so I will need to tend to these by next week Friday expiration. Options Net: $2.14

PNC Financial $PNC  I am long stock at $92.40 with short June $95 Calls (covered calls) so this trade has a “cap” to it right now ($96.46). Options Net is $1.46

Workday $WDAY  I own the July 85/87.5 Call Spread and short the September $85 Puts. I am short stock at $89.28 as a hedge for the short Puts. Options Net: $1.90

Yum! Brands  I am long stock at $91.26 with short June 05w $92 Calls (covered calls) so I will need to tend to this before Friday eod. Options Net: $2.25

 

– DM 10:15 AM CST

 

Earnings Trades – Options Expiration review for the month of May

I exited a large % of the Earnings trades this week (usually the design when using monthly options). I performed a post-trade review – the usual practice – and here is a brief look at the performance of the exited trades:

May_OpEx

A few things I noticed this cycle:
  1. Almost all the Call Flys expired worthless. In all but one of the trades involving a CF the short Puts expired as well (BWLD had to be hedged with stock, was called away)
  2. On a % basis, I had a slight increase in post-Earnings trades
  3. Stock trading around an Options trade (hedging, tagging along) continues to be crucial in maintaining/increasing a gain in the trade. Can’t stress this point enough: it is so important to be ready to hedge with stock in after-hours or pre-market when using Options in an Earnings trade (even when you are simply long Options as well)

– DM 11:30 AM CST